Category: Cryptocurrencies

The cryptocurrencies section covers articles about the basics of cryptocurrencies, how wallets work, the different classes of wallets, how to send or receive digital currencies, basic security, the basics of crypto exchanges, anonymity and regulation.

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Cryptocurrencies

Understanding Ethereum – A Step-by-Step Guide

When we thought we had heard it all about blockchain, and what it does, Ethereum sprang up. To many, it was seen as just another Bitcoin, but what most people

When we thought we had heard it all about blockchain, and what it does, Ethereum sprang up. To many, it was seen as just another Bitcoin, but what most people

When we thought we had heard it all about blockchain, and what it does, Ethereum sprang up. To many, it was seen as just another Bitcoin, but what most people didn’t know was that the project presented a timely idea, and a life-changing one whose implementation was bound to lead the world to new paths.

I know you’ve probably heard about Ethereum, but you’ve probably dismissed it as just another crypto. But what is it in the first place? Could it be just another crypto? Is it the same thing as ether? And what is it used for? Well, in this article, I’ll be expounding it in detail to answer these and to show you why Ethereum is not just another crypto.

What is Ethereum?

For starters, Ethereum is a software platform that allows developers to generate and deploy decentralized applications that are accessible globally. If you want to create a decentralized application, that not even you can control, then the Ethereum platform is the place to go. All you need to do is understand Ethereum’s programming language – solidity – and begin coding.

In simple words, Ethereum is the infrastructure that lets you run decentralized apps worldwide.

You will find some people using the words Ethereum and ether interchangeably. So is Ethereum and Ether one and the same thing? Well, let’s find out.

Ethereum and Ether – Are they any different?

The concept of Ethereum and Ether can be a little confusing. When we hear Ethereum, we are quick to associate it with other cryptocurrencies like bitcoin. To make it clearer, Ethereum is a platform built on blockchain where developers can build and deploy thousands of applications using smart contracts.

Ether, on the other hand, is the fuel that powers the Ethereum network, and the programmable money sold on cryptocurrency exchanges. 

The same way you’ll need gas for your car, ether is necessary for you to deploy and run applications on the platform. Ether is the power behind smart contracts and running DApps, token generation during ICOs, making payments, and facilitating transactions on the ETH blockchain.

In summary:

✅Ethereum is the platform; ether is what powers the platform

✅Ether can be bought and sold, Ethereum cannot

✅Ethereum has multiple applications; ether has a single application, enabling operations on the parent blockchain.

So, are Ethereum and Bitcoin similar?

Well, the two are similar in that they are both blockchain networks, but there are some significant technical disparities between the two. There is a very substantial difference between Bitcoin and Ethereum in both purpose and capability. While the former track’s ownership of digital currency, the latter’s primary focus is to support decentralized applications. 

In short, we can say that Bitcoin is a peer-to-peer currency that can be transferred instantly between transacting parties securely. Ethereum, on the other hand, supports smart contracts. And if you are wondering to yourself what a smart contract is, then you will be pleased to know that at the core of these Decentralized applications is a smart contract. So, what exactly is a smart contract?

What is a Smart contract in Ethereum?

A smart contract is simply a phrase coined to describe best “a computer code that can veto the exchange of property, money, content, shares, or anything valuable.” In blockchain language, a smart contract is a self-executing computer program that completes whenever certain conditions are met. It is a programmed code that runs without the possibility of third-party influence, fraud, downtime, or censorship.

All blockchains can process code, but most of them are limited. With Ethereum, it becomes different. Instead of allowing for limited operations, Ethereum lets developers create as many applications as they can, something never experienced before.

What are the uses of Ethereum?

The main use of Ethereum is to enable developers to create and deploy decentralized apps where these decentralized apps, also known as DApps, serve particular functions to users. By virtue of being built on a blockchain, decentralized apps are not controllable by any person or central system.

Ethereum can be used to decentralize any centralized service. From the existing intermediary services across a myriad of industries such as bank loans to other seemingly less interesting systems like voting and title registries, Ethereum can be used to get them all decentralized.

Another objective use of Ethereum is in the building of Decentralized Autonomous Organizations (DAO). This is an organization with no apparent leadership, run exclusively by programming code on a variety of smart contracts recorded on the Ethereum blockchain. The code takes the position of organization rules and structures, totally eliminating the need for a centralized control like in a traditional organization. Anyone who purchases tokens becomes a part-owner of a DAO, but instead of converting tokens to equity shares, tokens give people voting rights.

Ethereum is currently being accessed as a reliable platform for launching other cryptocurrencies. Following the ERC20 token standard laid down by the Ethereum Foundation, interested developers can also start their own versions and raise funds through an ICO. Through this strategy, token issuers set the amount of money they intend to raise before offering it in a crowd-sale in exchange for Ether. The last two years alone have witnessed ICOs raising Billions of dollars on the Ethereum platform.

Conclusion

For all the talk of decentralizing the system, Ethereum appears to be the ultimate solution. Its rise is suggestive of a market ready to embrace positive changes, and a platform for development in an area previously shadowed with uncertainties. It presents a bold claim for a futuristic technology unreliant on third-party forces, including social and political interferences. 

 

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Cryptocurrencies

The Features and Uses of Cryptocurrencies

Unless you’ve been living under a rock, you must have heard or seen the buzzword “cryptocurrency” or at least “bitcoin” in financial headlines or somewhere else. The point is, cryptocurrency

Unless you’ve been living under a rock, you must have heard or seen the buzzword “cryptocurrency” or at least “bitcoin” in financial headlines or somewhere else. The point is, cryptocurrency

Unless you’ve been living under a rock, you must have heard or seen the buzzword “cryptocurrency” or at least “bitcoin” in financial headlines or somewhere else. The point is, cryptocurrency has captured people’s imagination with its intriguing technology and its potential to become a powerful global currency in the future.

Most people know about the existence of cryptocurrency, but its use remains elusive.  If you’ve been racking your brain with questions like: what’s the use of cryptocurrency? What characteristics define it? Why should I pay attention? We have the answers for you. 

Properties of Cryptocurrencies

In the digital currency space, cryptocurrencies have some inherent features that starkly differentiate them. Here’s what makes Bitcoin, Ethereum, Zcash, NEM, Stellar, and other cryptos special.

1. Free of permission

At the core of cryptocurrencies are open source software and consensus-driven technology. Anyone and everyone can access the software needed to mine, trade in, and to complete transactions using cryptocurrencies. Since it is not regulated by anyone, you do not need permission from any authority to use it. 

2. Immutable

In its simplest sense, immutable means “cannot be changed.” Once a transaction is done, it’s done. This means that it’s impossible for anyone in the entire world to move a cryptocurrency asset apart from the owner of the private key. Also, a transaction cannot be reversed once it’s on public record on the blockchain ledger. 

3. Highly secure 

Not only are cryptocurrencies encrypted with extremely complex algorithmic patterns, but they also have an extra layer of security in the form of blockchain technology. Blockchain’s decentralized and transparent nature is such that even if malicious parties manage to hack the system, there’s nothing of value to steal. 

Also, most cryptocurrencies have servers all over the world with thousands of nodes tracking all activity in the networks. This ensures that even if some servers and nodes fall prey to hackers, the rest of the nodes will continue running the system. 

4. Deflationary

Most cryptocurrencies have a capped market supply, rendering them scarce. For example, Bitcoin has a maximum issue of 21 million coins – and that is the total number that will exist, ever. This makes the currency a prized and attractive asset. As its demand increases, its supply remains the same. This increases its value over time, making it deflationary. Cryptocurrency owners never have to worry about their asset value decreasing. 

5. Anonymous and Pseudo-anonymous 

Since there’s no governing authority on cryptocurrency networks, users do not have to provide proof of identity while transacting on the networks. It’s anonymous in this sense. However, it’s pseudo-anonymous in the sense that when a transaction request is submitted, the decentralized system will verify it and record it on the public ledger. Any person who transacts is linked to a public address, though no one will know the actual name of the address.

6. Trustless 

The decentralized nature of cryptocurrencies is such that nobody has to trust anyone for transactions to occur. Users utilize a technique known as consensus to interact with each other without needing validation from anyone but the system. When a transaction is entered in the network, all nodes will receive it and verify if the digital signature is genuine or not. If it’s genuine, the nodes will record it on the blockchain. If it’s not, the nodes will flag the transaction and discard it.

Uses of Cryptocurrencies

Now that we’ve explored what makes cryptos unique, the curious part is whether they’re worth the hype. 

It turns out cryptocurrencies are very useful in the real world. At least in the areas below:

✅Low-Cost and Fast Money Transfer

Many cryptocurrency enthusiasts and users will acknowledge one of the finer purposes of cryptocurrency is their ability to send and receive money at incredibly fast speeds and impressively low costs. The speed of transactions is a very critical part of any financial system, and cryptocurrency excels at this.

When compared with the traditional payment systems which take several days, even the slowest cryptocurrency is lightning fast – with transactions of minutes, and others mere seconds. What makes this possible is: all that’s needed is for a miner to decipher an encryption, after which a transaction is confirmed.  

✅A Censorship-resistant Alternative to Wealth storage

The freezing of someone’s assets and cash is easier than most people think. This is especially true in jurisdictions with an unfair rule of the law. All it takes is to be accused of financial misconduct or to run afoul of powerful people. In such a scenario, it’s easy to find yourself with no access to cash, even if you are not guilty of any wrongdoing. 

With cryptocurrencies, this can never happen. This is because it’s only the holder of the bitcoin currency who has the key to access their bitcoin wallet.

✅Private Transactions 

Some cryptocurrencies such as ZCash and Monero are inherently privacy-centric – they enable users to make anonymous transactions on their network. This way, individuals do not have to be interrogated by a bank on where their money came from, why they are sending large amounts of funds and who the recipient of the money is.

This also makes them a welcome alternative to the usual labyrinthine process involved when you’re transferring a lot of money – an aspect that causes people on both ends to be stranded for days.

✅Cashless Remittances  

Non-cash remittances are more secure, more convenient, and easier to track. Cryptocurrencies are unparalleled in this regard – especially with their added characteristic of water-tight security courtesy of advanced encryption.  

For instance, Nigeria’s blockchain startup allows users to send money from anywhere in the world to a selection of African nations. Diaspora Africans can buy SureRemit’s tokens and use them within the mobile app version to purchase mobile airtime and pay utility bills for their loved ones in Africa.

Conclusion

Cryptocurrency has revolutionized the finance world with unique offerings which, going by current indications, will render it more dominant in our interactions with money. With its unique security system, cheap costs, and swift transaction speeds, it will continue to find more applications in the real world. 

 

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Cryptocurrencies

Everything You Need to Know About Cryptocurrency and the Rise of Digital Currencies

Cryptocurrency has taken the financial space by a storm. It’s almost impossible to go for a week without hearing of a new cryptocurrency being launched or another one soaring to

Cryptocurrency has taken the financial space by a storm. It’s almost impossible to go for a week without hearing of a new cryptocurrency being launched or another one soaring to

Cryptocurrency has taken the financial space by a storm. It’s almost impossible to go for a week without hearing of a new cryptocurrency being launched or another one soaring to record highs, sending savvy investors rushing in. For most people, though, the concept remains foggy if not downright complicated. In this article, we break down everything about cryptocurrency, including: is it the same thing as digital currency?

Cryptocurrency is an internet-based medium of exchange. “Crypto” refers to the fact that the currency uses cryptography to secure and verify transactions and regulate the release of new units. One of the most defining features of cryptocurrency is that it relies solely on the internet: it has no issuing or regulating authority, nor is it bound by geographical restrictions.

Cryptocurrency or Digital Currency?

It’s easy to conflate these two terms, especially since financial analysts and the media often use them interchangeably. So what’s the difference after all? The key thing to grasp is that all cryptocurrencies are digital currencies, but not all digital currencies are cryptocurrencies.

Digital currency is the term for any form of money that’s available only in digital form. This money is not tangible like, say, coins. Digital money can be transferred from one person to another, be traded for another currency, and can be used to transact, just like physical money. It can also be sent to and received in any place in the world.

The defining difference between cryptocurrency and digital currency lies in one word: crypto. Cryptocurrencies are a form of digital currency that is based on cryptography – a technique that combines elements of art, science, and mathematics to convert readable text into unintelligible text so that information is secured from unauthorized parties.

If you’re looking to invest in cryptocurrency and are still confused about what it is or you just want to sound smart when you’re talking about digital currencies, then it helps to know exactly the difference between the two.

Differences between Cryptos and digital currencies

☑️Structure: Digital currencies are centralized, meaning their transactions are regulated by a particular entity, like a bank. Cryptocurrencies are decentralized, meaning regulation within the network is done by the community in the network.

☑️Transparency: Digital currency transactions are confidential. Cryptocurrency transactions are transparent and are in public record, i.e., anyone can see the transactions of any user since transactions are recorded on an open chain – the blockchain. 

☑️Potential for Manipulation: Digital currencies have a centralized system that can exert authority over transactions – like canceling or freezing them at the request of a legitimate party. Cryptocurrencies are not controlled by any authority, and cannot be manipulated. 

☑️Legal Status: Most countries have established a legal framework for digital currencies. For cryptocurrencies, the same cannot be said, at least currently.

Common Cryptocurrency Lingo

You don’t have to be the originator of Bitcoin to understand some of the most common “cryptocurrency speech” around. Here is a definition of some of the most used words to ease you into the world of cryptocurrency.

☑️Blockchain: Every new record in a cryptocurrency network is recorded as a “block.” It’s so-called because it’s resistant to alteration. Blocks are linked together by cryptography – hence “blockchain.”

☑️Mining: This is the process of verifying transactions before they are recorded on the blockchain network. Mining involves solving complex computational puzzles and decrypting codes.

☑️HODL: “Hold On For Dear Life,” meaning holding onto your cryptocurrency coins despite unfavorable market conditions.

☑️Altcoins: This is the name given to all other cryptocurrencies after Bitcoin – the first and most successful cryptocurrency to date.

☑️CAP: This is a shorthand of market capitalization, which means the total number of coins in supply multiplied by the going price.

☑️Peer to Peer: In a peer to peer model, two or more computers interact directly with each other without the intervention or presence of an intermediary.

The Rise and Future of Cryptocurrency

Only years ago, cryptocurrency was an academic concept explored without much success. That was until 2009 when the first cryptocurrency was launched and took the world by storm. Since then, thousands of cryptocurrencies have been launched with varying levels of success. Today, the cryptocurrency model is being explored by institutions: including governments and financial institutions to make processes more efficient and secure 

If the success of Bitcoin, the most popular cryptocurrency, is anything to go by, then the future of cryptocurrencies is bright. Other cryptocurrencies such as Ripple, Ether, Litecoin, and Cardano have commanded a significant share of attention and investment. Initial Coin Offerings (ICOs), akin to the shares of a company, continue to generate excitement and interest in the crypto market.

How Can You Buy and Use Cryptocurrency?

The most important thing is to know how you can benefit from cryptocurrency and how to stay safe while doing so. Whenever you purchase a cryptocurrency, you become the owner of a private key to the wallet address of the coin(s).

With this key, you can access and spend your bitcoin to pay for things or transfer to anyone. Where you place your key is crucial because it means the difference between holding your valuable coins and losing them. So, how do you safeguard your coins? Innovative individuals and companies have come up with crypto wallets that, apart from protecting them from theft, enable you to store, send and monitor their balance. Here are the various types of wallets available today.

Desktop wallets: This type of wallet allows you to send and receive cryptocurrency addresses on your computer. An example is Cryptonator, which enables you to store several cryptocurrencies in one account.

Online wallets: These are web services that allow you to store your cryptocurrencies online. You can access them anywhere, anytime. 

Mobile wallets: These are apps that allow you to encrypt your cryptocurrencies and pay for services right from your phone.

Paper wallets: These are pieces of paper with QR codes on them, one being the public address at which you receive your cryptocurrency, the other being your private address where you send them.

Hardware wallets: These are USB devices that store bitcoin electronically and keeps your private keys.  

Conclusion

By now, you should have a fair understanding of this exciting thing called cryptocurrency. Though a bit daunting at first, it’s an exciting and revolutionary technology with something to discover every day. Remember, like with everything, the more you learn about it, the more you get comfortable and possibly invest in its ever-growing potential.

 

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Cryptocurrencies

Investing in an Early Stage of an ICO

Are projects (ICOs) worth looking at in early stages?

This article will show you that while investing, one does not have to follow the crowd in order to be successful.

Are projects (ICOs) worth looking at in early stages?

This article will show you that while investing, one does not have to follow the crowd in order to be successful.

Are projects (ICOs) worth looking at in the early stages?

This article will show you that while investing, one does not have to follow the crowd in order to be successful. During times where market timing is not in the best spot (with the whole crypto market going down) and people not wanting to diversify gains, as they rarely have any, people are scared of investing in ICOs. Most people just follow the crowd and the hype when it comes to ICOs. There are, however, many more factors that need to be included in the analysis. My previous articles have shown that an ICO needs to be looked at from many perspectives (token economics, team, social media, SEO part of the website…). But, what happens when an ICO is in the early stages?

Early-stage ICOs

Investing in the early stages of an ICO might be the way to acquire the best bonuses. But it is also a big risk, as there is usually not enough data for a conclusive analysis. So how do we determine if a project is worth investing in?

1. Project Idea – the most important thing with every ICO is the idea. It’s a problem they are trying to solve and the lifeline of their project. You can always judge the potential acceptance of the idea when it comes to ICOs, no matter how early it is in the project.

2. Team –it’s what makes the idea go from vision to reality. If we are looking at early-stage ICOs, this becomes even more important, as this is one of the few things we can just get it on. Both team and advisory board need to be impeccable.

3. Roadmap – Less value than the first, too, but is used to estimate the investment time frame.

4. Potential social media coverage – this part will probably be non-existent as the project is in the very early stages. However, some influencers might be on it as fast as you are.

5. The X factor – something that will intrigue other people. It is usually some part of the idea or their monetization plan.

What is important and noticeable here is: I didn’t list token economics or Hype/market traction anywhere. This is because we are looking at a potential gem project way too early for them to have these.

Conclusion

Early-stage ICOs are potential moneymakers and can bring you amazing returns. However, we are operating with insufficient data in the ICO analysis, so it brings a lot more risk. This means that compromising on any of the factors analyzed will cost people their investments. I would advise picking only the best of the best ICOs to invest in early on, or just keep an eye on them and wait for the data to present and the investment to be safer (and reliable).